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payment on account penalties question

payment on account penalties question

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If a client's income tax for 2018/19 is say double than payments on account for 2018/19 (the latter legitimately based on 2017/18 tax), will the HMRC impose penalty for negligence if the self-assessment return for 2018/19 that shows the higher tax is filed prior to 31/7/19 and the client does not increase his 31/7/19 payment to accord with the higher tax liability? thanks. 

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02nd May 2019 10:47

No, of course not.

After 20+ years of self assessment, what put this into your head ?

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02nd May 2019 10:53

don't know nowadays have to be extra cautious too many traps i researched it before i asked and couldn't find anything

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to neanderthal
02nd May 2019 11:02

neanderthal wrote:

don't know nowadays have to be extra cautious too many traps i researched it before i asked and couldn't find anything

It's because there's nothing there to find.

How would that work in year 1 if it were so ?

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02nd May 2019 10:57

No, TMA s59A(2) limits the POA to 50% of the relevant amount. You can make it smaller but have no obligation to make it bigger, and the way the legislation is worded I'm not sure you're allowed to make it bigger officially.

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